At the same time as it was being swallowed by Dell, EMC pre-announced its third quarter results, revealing virtually no growth in revenues from a year ago.
The company expects Q3 revenues to be between $6.05bn and $6.08bn. At the mid-point, that is 0.5 per cent higher than a year ago and 1 per cent more than the second quarter. Why is there virtually no growth?
CFO Zane Rowe’s prepared statement said: “ We … experienced a higher than expected build in unshipped storage product orders of approximately $100m due to the timing of bookings in the third quarter.
If that had not happened then revenues might have been $6.18bn, which is still unimpressive from a growth point of view: just 2.5 per cent growth over the year.
Rowe’s remarks included this gem: “We continued to generate positive momentum in our IT transformation-focused businesses such as Pivotal, VMware and our emerging storage portfolio.”
The emerging storage portfolio includes the XtremIO product which has accumulated a billion dollars in sales in six quarters.
It looks like the legacy products – VMAX, VNX, DataDomain, etc – did poorly, which underscores the need for growth-generating change. The acquisition by Dell is intended to help accomplish this.
The full results statement will be published on October 21. ®